Is Starhill Global REIT still as bright?

SINGAPORE (Nov 1): DBS Vickers Securities is maintaining its “buy” call on Starhill Global REIT (SGREIT) with an unchanged target price of 87 cents, while CIMB Securities is reiterating its “hold” call on the REIT, lowering its target price from 86 cents previously to 81 cents.

This comes after the release of the retail REIT’s 1Q17 results last Friday where SGREIT reported flat 1Q17 DPU of 1.30 cents, 0.8% lower than the year before with higher contributions from Singapore and Malaysia offset by the lower contributions from its properties in Australia, China and Japan.

In a Monday report, DBS analyst Derek Tan notes the improved occupancy in the REIT’s Wisma Atria retail property over the last three quarters, and expects the re-opening of Isetan to drive more footfalls into the mall and eventually translate to higher rents on other floors.

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